Nokia plans to extend its strategy by broadening the price range of Lumia and continuing to differentiate with the Windows Phone platform, new materials, new technologies and location-based services.

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Thursday, June 14, 2012:
Recently we heard that Microsoft will be buying out Nokia, owing to the bad times that the Finnish handset maker is facing. While the company rubbished all claims, they have tightened their belt on making the fate of the company turn around. The latest step is the announcement of laying off 10,000 plus employees before the end of 2013. This is a part of their to plan to close factories in Finland, Germany and Canada, as well as refocusing its marketing efforts, streamlining support staff and reducing "non-core" assets.

Nokia also sold its luxury brand Vertu to a private equity group EQT VI in a deal, which is expected to close during the second half of the year. This will leave Nokia with only 10 per cent share. Company issued a press release that stated: To support this period of transition, Nokia intends to improve its operating model by significantly reducing its Device & Services operating expenses, substantially reducing its headcount and reducing its factory footprint. As a result, Nokia intends to return to sustainable non-IFRS operating profitability in Devices & Services as soon as possible. In Smart Devices, Nokia plans to extend its strategy by broadening the price range of Lumia and continuing to differentiate with the Windows Phone platform, new materials, new technologies and location-based services.

"We are increasing our focus on the products and services that our consumers value most while continuing to invest in the innovation that has always defined Nokia," said Stephen Elop, Nokia president and CEO. "We intend to pursue an even more focused effort on Lumia, continued innovation around our feature phones, while placing increased emphasis on our location-based services. However, we must re-shape our operating model and ensure that we create a structure that can support our competitive ambitions."